Quiet Week

Quiet week is an understatement. Based on volume, one could hardly feel a market pulse.

CNBC anchors had their hands full tracking retail sales (or lack thereof) and other
economic indicators (which were ugly).

The general tone seems to be, 'Can't wait till 2008 is over. Good riddance! 2009 has got
to be better.' Are you sure about that? President-elect Obama has his work cut out for
him. I wish him well, for all our sakes.

Observe that 90% of the Dow components are classified as 'consolidating'. An interesting
pattern is beginning to appear.

Case in point: KO has just put in a significant support line connecting the low's of
10/10 (40.29) - 11/21 (40.50). While the stock is beneath its 200 day sma, the stock is
no longer declining. It's moving sideways in a trading range. If this support line holds,
it would be an important 'floor.' If not, it would become an important 'ceiling.'

This pattern appears to be wide spread. Also, Bollinger Bands are extremely wide. The
time for entry is when they are narrow.

Heads Up

During the next two weeks, the following Dow components report earnings. Keep a sharp eye
out for possible price swings leading up to 'earnings day' (Subject to revision):